Fannie Mae 2011 Annual Report Download - page 129

portfolio to continue to decrease due to the restrictions on the amount of mortgage assets we may own under the
terms of our senior preferred stock purchase agreement with Treasury.
CONSOLIDATED BALANCE SHEET ANALYSIS
We seek to structure the composition of our balance sheet and manage its size to comply with our regulatory
requirements, to provide adequate liquidity to meet our needs, and to mitigate our interest rate risk and credit risk
exposure. The major asset components of our consolidated balance sheets include our mortgage investments and
our cash and other investments portfolio. We fund and manage the interest rate risk on these investments through
the issuance of debt securities and the use of derivatives. Our debt securities and derivatives represent the major
liability components of our consolidated balance sheets.
The section below provides a discussion of our consolidated balance sheets as of the dates indicated and should
be read together with our consolidated financial statements, including the accompanying notes.
Table 25 displays our consolidated balance sheets as of December 31, 2011 and 2010.
Table 25: Summary of Consolidated Balance Sheets
As of December 31,
2011 2010 Variance
(Dollars in millions)
Assets
Cash and cash equivalents and federal funds sold and securities purchased under
agreements to resell or similar arrangements ............................... $ 63,539 $ 29,048 $ 34,491
Restricted cash ........................................................ 50,797 63,678 (12,881)
Investments in securities(1) ................................................ 151,780 151,248 532
Mortgage loans:
Of Fannie Mae ...................................................... 380,379 407,482 (27,103)
Of consolidated trusts ................................................. 2,590,398 2,577,794 12,604
Allowance for loan losses ................................................ (72,156) (61,556) (10,600)
Mortgage loans, net of allowance for loan losses ............................ 2,898,621 2,923,720 (25,099)
Other assets(2) .......................................................... 46,747 54,278 (7,531)
Total assets ......................................................... $3,211,484 $3,221,972 $(10,488)
Liabilities and deficit
Debt:
Of Fannie Mae ...................................................... $ 732,444 $ 780,044 $(47,600)
Of consolidated trusts ................................................. 2,457,428 2,416,956 40,472
Other liabilities(3) ....................................................... 26,183 27,489 (1,306)
Total liabilities ...................................................... 3,216,055 3,224,489 (8,434)
Senior preferred stock ................................................... 112,578 88,600 23,978
Other deficit(4) ......................................................... (117,149) (91,117) (26,032)
Total deficit ......................................................... (4,571) (2,517) (2,054)
Total liabilities and deficit .............................................. $3,211,484 $3,221,972 $(10,488)
(1) Includes $49.8 billion as of December 31, 2011 and $32.8 billion as of December 31, 2010 of non-mortgage-related
securities that are included in our other investments portfolio, which we present in “Table 38: Cash and Other
Investments Portfolio.”
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